Feasibility Condition Clause Samples
A Feasibility Condition clause establishes that a contract or specific obligations within it are contingent upon the successful completion of a feasibility study or assessment. In practice, this means that parties are not required to proceed with the project or investment unless the feasibility study confirms that the project is viable, whether in terms of technical, financial, or regulatory criteria. This clause serves to protect parties from committing resources to projects that may ultimately prove impractical or unprofitable, thereby allocating risk and ensuring that only viable projects move forward.
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Feasibility Condition. 3.2.1 Buyer shall have until 5:00 p.m. on the last day of the Due Diligence Period to confirm in Buyer's sole discretion, at Buyer's sole expense, whether Buyer may feasibly acquire and use the Property for Buyer's intended purpose. During the Due Diligence Period, Buyer shall, in addition to all other matters regarding the Property, have reviewed (or shall have assumed the risk of not reviewing) all of the following:
(a) the physical condition of the Property;
(b) title to Property;
(c) the availability of all necessary utilities and gravity sewers and storm drains for the Property;
(d) rental agreements, leases, service contracts, tax bills and other written agreements or notices which affect the Property to the extent furnished to Buyer;
(e) building inspection reports and engineering reports to the extent furnished to Buyer;
(f) the environmental condition of the Land and the Building, including the existence of toxic waste and hazardous substances; and
(g) the economic feasibility of Buyer's intended use of the Property.
3.2.2 By the end of the Due Diligence Period, Buyer shall provide written notice to Seller and Escrow Holder as to whether Buyer approves the feasibility of acquiring the Property (either "Feasibility Notice" or "Non-Feasibility Notice"). If Seller and Escrow Holder receive a Feasibility Notice from Buyer by the end of the Due Diligence Period, or do not receive either form of written notice, this feasibility condition shall be conclusively deemed satisfied in all respects including Buyer's approval of each of the items set out in Paragraph 3.
2.1. If Seller and Escrow Holder receive the Non-Feasibility Notice by the end of the Due Diligence Period, Escrow and this Agreement shall terminate, and the Deposit shall be returned to Buyer, as provided in Paragraph 6.3.
3.2.3 Within three (3) business days following the Effective Date, Seller shall make available for Buyer's review, in the offices of Seller's property manager or at the Building, originals or true copies of the following documents to the extent that such documents exist and are within the possession or control of Seller or any of its agents: all Leases, Contracts, Licenses and Permits, current tax and utility bills, surveys, plans and specifications, current operating and expense reports, environmental assessment reports, engineering reports, notices from governmental agencies, repair records and inspection and maintenance reports. Seller may, at its option and expense, prov...
Feasibility Condition. (a) During the period up to the Due Diligence Date, each of Smart and SmartStop may perform (subject to compliance with other relevant provisions of this Agreement) due diligence and investigations in connection with feasibility of the Project (the “Feasibility Due Diligence”) based on the following information:
(i) such financial analysis of the Project as deemed necessary or desirable by either Smart or SmartStop; and
(ii) a feasibility study in respect of the Project completed by an Independent Third Party jointly retained by Smart and SmartStop.
(b) Each of Smart and SmartStop shall be entitled, on or before the Due Diligence Date, to determine in its Sole Discretion whether or not it is satisfied with its Feasibility Due Diligence.
(c) Smart shall be deemed not to be satisfied with the results of its Feasibility Due Diligence unless it delivers to SmartStop on or before the Due Diligence Date a written notice in the form attached hereto (with the relevant details inserted therein) as Schedule H (“Smart’s Feasibility Notice”) stating that it is satisfied in its Sole Discretion with the results of its Feasibility Due Diligence. If Smart fails to give SmartStop Smart’s Feasibility Notice by such time, then this Agreement shall terminate automatically at such time and, upon such termination, SmartStop and Smart shall be released from all obligations under this Agreement (except for those obligations which are expressly stated to survive the termination of this Agreement) and the Deposit then being held and all interest accrued thereon shall be dealt with in accordance with Section 5.2.
(d) SmartStop shall be deemed not to be satisfied with the results of its Feasibility Due Diligence unless it delivers to Smart on or before the Due Diligence Date a written notice in the form attached hereto (with the relevant details inserted therein) as Schedule I (“SmartStop’s Feasibility Notice”) stating that it is satisfied in its Sole Discretion with the results of its Feasibility Due Diligence. If SmartStop fails to give Smart SmartStop’s Feasibility Notice by such time, then this Agreement shall terminate automatically at such time and, upon such termination, SmartStop and Smart shall be released from all obligations under this Agreement (except for those obligations which are expressly stated to survive the termination of this Agreement) and the Deposit then being held and all interest accrued thereon shall be dealt with in accordance with Section 5.2.
(e) Each of...
Feasibility Condition
Feasibility Condition